Steps to ward off an economic depression

“Investment sentiment will continue to be eroded if the additional 10% US tariff is imposed on the remaining US$300bil of Chinese imports next month, ’’ said Nor Zahidi Alias(pic), associate director of economic research, Malaysian Rating Corporation.

With talk of a higher probability of recession, the notion of a depression may be still remote but flaming trade and geopolitical tensions can produce a powerful domino effect.

The risks are stacking up; besides trade fights and quarrels over technology, currency wars have become another boiling point.China has fixed the yuan weaker at below 7.0 to the dollar; the US has labelled China a currency manipulator.